California’s offset market is evolving under new legislation and shifting fundamentals. This CCO Forecast Update explores the impact of AB1207 and SB840, covering program extensions, offset rules, and the upcoming 2026 review, while noting that near-term pricing effects remain limited. The bigger story lies in updated MMC protocol and Non-DEBs forecasts, which bring a major shift to long-term supply dynamics. With post-2030 oversupply risks still in focus, this edition highlights why emerging non-compliance demand could be critical to maintaining market balance in the years ahead.